Sangeeta Nair

The Union Minister of Home Affairs, Rajnath Singh on June 1, 2018 launched an Online Analytical Tool to facilitate closer monitoring of the flow and utilisation of foreign contributions received by various organisations registered or permitted under the Foreign Contribution (Regulation) Act, 2010.

Objective

The web-based tool will enable decision-makers in various government departments to scrutinise source of foreign funds and their actual use in India.

It will also give them the capacity to take data-driven and evidence-based decisions regarding the compliance of the provisions of the FCRA, 2010.

• Its dashboard will be integrated with the bank accounts of the FCRA-registered entities through the Public Financial Management System for updation of transactional data on a real-time basis.

• Approximately, 25,000 active organisations are registered under the FCRA, 2010 and foreign contributions worth Rs 18065 crores were received by such organisations from foreign donors for various social, cultural, economic, educational and religious activities during the financial year 2016-17.

• The tool will effectively monitor thousands of such transactions annually thus, helping the stakeholders in the government to better regulate acceptance and utilisation of foreign contributions.

About Foreign Contribution (Regulation) Act, 2010

The Foreign Contribution (Regulation) Act, 2010 came into effect on May 1, 2011.

It aims to consolidate the law to regulate the acceptance and utilisation of foreign contribution or foreign hospitality by certain individuals, associations or companies and to prohibit acceptance and utilisation of foreign contribution or foreign hospitality for any activities detrimental to the national interest.

Features of the Act

• Under the Act, any organisation of a political nature and any association or company engaged in the production and broadcast of audio or audio visual news or current affairs programme have been placed in the category prohibited to accept foreign contribution.

• The provision states that no person who receives foreign contribution as per provisions of this Act shall transfer to another person unless that person is also authorized to receive foreign contribution as per rules made by the Central Government.

• It also specifies that the foreign contribution shall be utilized for the purpose for which it has been received.

• The act provides that the registration certificate granted to the associations for accepting foreign contribution shall be valid for a period of five years.

• Further, every person who has been granted a registration certificate will have to renew it within six months before the expiry of the period of the certificate.

• The act also includes provisions for suspension as well as cancellation of registration granted for violation of the provisions of the Act.

• Any person violating the provisions of the Act shall be punishable with imprisonment for a term which may extend to five years or with fine or with both.